She may be happy, but is it in YOUR interests? I suspect not - why would you even contemplate granting a new tenancy to someone you intend to evict?
I would be making noises to her that if she thinks she will have difficulty meeting the rent then you would be open to ending the tenancy early rather than have to go through the eviction process (you do realise she does not have to leave at the end of the 12 months?)
If you like the information/help provided - Gizza Job
(People under my age won't understand the significance of those last 2 words)